Planning for Growth: Strategies for Expansion and Succession

This guide explores the various strategies and considerations for planning for growth for Desklib, an online library for study material. It covers key considerations for growth, identification of opportunities for growth, alternatives for expansion, and more. The guide also includes an evaluation of different exit or transition strategies for smaller businesses, including the advantages and disadvantages of each strategy.

Planning for Growth

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Key considerations for growth.....................................................................................................3
Identification of opportunities for growth...................................................................................5
Alternatives for expansion...........................................................................................................7
Opportunities and routes for growth............................................................................................7
Create a thorough, logical company strategy which will demonstrate your expertise of how to
establish strategies for accomplishing your goals.......................................................................7
Determination of the commercial opportunities accessible.........................................................8
Utilizing Ansoff matrix and the risks involved with each choice, carefully assess the growth
alternative....................................................................................................................................8
Analyzing the available financial choices and weighing the potential risks involved with the
offered alternatives......................................................................................................................9
Recommendation to the company.............................................................................................11
TASK 2..........................................................................................................................................11
Evaluating different exit or transition strategies for smaller businesses, including the
advantages and disadvantages of each strategy.........................................................................11
In addition to providing sound advice, assessment exit or transition alternatives.....................13
A thorough analysis of the firm's transition or exit alternatives and supported suggestions for
execution....................................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
The administration of companies engages in a strategy engagement known as "planning for
growth" to make certain that the company can accomplish continuous expansion in the
foreseeable by using the right strategies and processes (Achtenhagen, Brunninge and Melin,
2017). Therefore that they could guarantee and prepare for progress, managers must design
appropriate short-term and longer run strategies. For the firms to achieve increased levels of
prosperity in the upcoming time frame, they must ensure that they can implement them correctly.
Knights and Dukes Homes have been taken into consideration for this study. It is a United
Kingdom company that deals with property investment in London. The various methods for
achieving expansion would be covered in this study. This would analyse the factors that small
and medium enterprises must take into account while evaluating expansion possibilities and
developing corporate plans. This project would additionally cover the departure and successor
choices that are accessible for a certain organisation.
TASK 1
Key considerations for growth
In order for the company to attain better levels of expansion in the term, it is necessary for
it to take a variety of factors into account. The McKinsey 7s model could be employed to
discover these. The following is an evaluation of this structure:
McKinsey's seven-point approach: The firms could make utilization of this approach to
identify the numerous aspects of their operations which may have an impact on their prospective
progress. The following is a discussion of those variables:
 Strategy: Using the appropriate techniques in the long term is something which
businesses must ensure they are capable to do. They should anticipate their rivals and
ensure that they employ the proper tactic. It is essential to formulate the appropriate plan
for accomplishing expansion in the setting of Knights and Dukes Homes. This would
guarantee that the right strategy is employed.
 Structure: An organisation must ensure that it chooses the appropriate layout. The ideal
framework must be chosen in the setting of Knights and Dukes Homes in order to ensure
the proper degree of performance and productivity (Demazière, 2018).

 Systems: A business should employ the proper processes to sustain profitability and
productivity at a high degree with a minimum of hassle and difficulty. It is crucial for
Knights and Dukes Homes to be able to employ the appropriate procedures such that it
could think about the best course for growing the company.
 Shared values: A company may have a variety of common beliefs that are incorporated
into its operations. It is essential to make sure that the organisation takes such principles
into account properly in the setting of Knights and Dukes Homes. This is true since
employing these would allow for progress.
 Skills: These are the different kinds of abilities that businesses exhibit in order to reach
the required degree of development. Such talents must be taken into account at Knights
and Dukes Homes in order to create expansion goals.
 Style: It is the term employed to describe the way that businesses operate. It is necessary
for Knights and Dukes Homes to embrace a specific pattern because doing so could
greatly aid in the formulation of expansion goals.
 Staff: This word relates to the company's workers. It is crucial for Knights and Dukes
Homes' employees to demonstrate their effectiveness and efficiency because doing so
would undoubtedly aid the business in achieving greater success in the term.
Bowman's strategic clock: The numerous sorts of strategy orientations that a firm might
engage on are identified by Bowman's strategic clock such that it could choose the optimal one to
attain better development in the term. The following are the many opportunities that are
accessible within it:
 Low Price and Low Value Added- The corporation offers goods in this situation that
are marketed cheaper and add less worth. A business such as Knights and Dukes Homes
is not suited for this situation since it risks losing industry advantage (Deng, Ma and
Zhang, 2017).
 Low Price- In this situation, businesses targeted consumers by maintaining their item
prices lower. It is crucial for Knights and Dukes Homes to be in a situation to exploit this
positioning to seek additional clients. As a result, the business may experience greater
expansion.

 Hybrid: In this category, a combination of cheap prices and item distinctiveness would
be taken into account. Therefore, this situation is reasonably decent in the setting of
Knights and Dukes Homes such that it could attain progress.
 Differentiation: Through this situation, businesses may ensure that their goods can be
distinguished from those of their competitors. This stance could be taken in the
framework of Knights and Dukes Homes.
 Focused Differentiation: In this situation, businesses concentrate specifically on
particular business sectors wherein they may distinguish their offerings. The Knights and
Dukes Homes will benefit from this post.
 Risky High Margins- In this situation, firms establish elevated pricing for their goods
and operations sans providing anything noteworthy. This stance is undesirable in the
setting of Knights and Dukes Homes since it would result in deficits for it (DODDS,
DIMANCHE and SADOWSKI, 2018).
 Monopoly Pricing: In it, a monopolistic is created by the commercial groups operating
in the industry. If it could create a monopoly in the industry, Knights and Dukes Homes
may embrace this stance.
 Market Share Loss: In this circumstance, a standardized pricing is established for a
variety of goods with a lower apparent worth. Consequently, it is not advised for Knights
and Dukes Homes.
Rationale: Knights and Dukes Homes ought to choose the hybrid situation, in which it could
both establish a lower pricing for its goods and activities and establish them apart from those of
its rivals. By effectively utilising this situation, the business could prepare for prospective
significant levels of expansion because it could draw in more clients and gain a competitive edge
over its competitors.
Identification of opportunities for growth
A company has opportunity to expand in the corporate context. With the use of the
accompanying concepts, things could be recognised as follows:
Porter's generic strategies: These are employed expressly to help identify areas where there
are chances for expansion. Such tactics could be applied in the setting of Knights and Dukes
Homes as follows:

 Cost Leadership: As part of this approach, firms are expected to ensure that expenses
could be efficiently decreased. It is necessary to use this method successfully in the
setting of Knights and Dukes Homes by lowering the total degree of expenses (Grooms
and Frimpong Boamah, 2018).
 Differentiation: In this, the businesses put the emphasis on making their goods and
offerings stand apart. It is necessary for Knights and Dukes Homes to make sure that its
goods and offerings stand out from those of its rivals.
 Cost Focus: In this approach, the corporations place a particular emphasis on particular
industry areas wherein they may save expenses. The management could discover such
sectors in the framework of Knights and Dukes Homes in which they could cut expenses.
 Focus on Differentiation: It focuses on specific sectors wherein businesses could set
their goods and activities apart from those of rivals. It is crucial for Knights and Dukes
Homes to be able to schedule for expansion.
Rationale: Knights and Dukes Homes' management must employ the cost leadership
approach since doing so would guarantee that the business can cut expenses while growing its
customer base. By gaining a larger proportion of the marketplace, a company could simply
overtake its rivals and accomplish greater levels of expansion with minimal difficulty.
Ansoff Matrix: This is a managerial technique intended to pinpoint the various business
expansion methods that could be employed by organisations to reach greater levels of expansion.
The following are the numerous tactics that fall within it:
 Market Development: With this approach, businesses seek for fresh marketplaces in
which to sell their goods and operations. Executives of Knights and Dukes Homes could
use it wisely to ensure that they are equipped to focus on higher-level expansion (Gunn
and Var, 2020).
 Diversification: In this process, businesses could expand the range of goods and
activities they offer by entering a brand-new marketplace with fresh goods and offerings.
This would result in more earnings if the administration of Knights and Dukes Homes
uses it, but doing so carries some concern.
 Market Penetration: In this strategy, businesses could achieve significant expansion by
making sure that more of their current goods and activities are being sold in the industry.

If Knights and Dukes Homes broadens its product offering in the area where it already
operates, it can employ this method to guarantee expansion.
 Product development: It is where businesses must make sure they create the best goods
for the marketplace. The administrators of the Knights and Dukes Homes could achieve
this goal by employing cutting-edge strategies and procedures.
Rationale: The administration of Knights and Dukes Homes could adopt a market
development plan to enhance their goods line and targeting fresh markets, which would enable
company to experience rapid expansion.
Alternatives for expansion
Regarding Knights and Dukes Homes to expand in the coming, there seem to be numerous
alternatives accessible. It could determine the impact of its inner variables on its performance
utilizing McKinsey's 7S framework. The key tactical standpoint for the organisation to adopt
could be found using Bowman's strategic clock. The suitable approach could be determined
utilizing Porter's Generic Techniques. The Ansoff Matrix could be employed to assess the
optimum choice for generating expansion and gaining a competitive edge (Harilal, Tichaawa and
Saarinen, 2019).
Opportunities and routes for growth
A corporation can choose from a variety of choices and routes for expansion. The greatest
feasible choice that could be employed could be evaluated by Knights and Dukes Homes.
Employing the Ansoff Matrix, the company's executives have determined that they could employ
the Market Development Strategy to approach a growing industry in order to maximise their
earnings and customer base in order to gain a comparative edge in the long term.
Create a thorough, logical company strategy which will demonstrate your expertise of how to
establish strategies for accomplishing your goals
Overview of the factors that give organisations a strategic edge- Developing a
comparative edge is the cornerstone of an organization's expansion. The primary comparative
edge of Knights and Dukes Homes is tied to their cost-leadership company model, which
involves selling their goods at reduced pricing in order to draw in a big consumer demographic.
As a result, their company would quickly reach unprecedented heights. Because of this, the

business is able to outperform its competitors and keep its advantageous place in the industry
(Higgins and Savoie, 2017).
Determination of the commercial opportunities accessible
The main prospect for Knights and Dukes homes is dependent on the numerous
macroeconomic variables features since they are connected to the outside surroundings. In this
secure democratic climate, the United Kingdom assists to increase opportunities for corporate
expansion both inside and beyond the nation. As a result of their excellent monetary position,
British citizens pay extra money on goods, which raises their quality of lifestyle in community.
In this case, Knights' and Dukes' homes could use digital networking to advertise their services,
which aids in bringing in a sizable consumer base. Finally, a corporation could seize the chance
by getting involved in corporate social responsibility activities which are advantageous for the
ecosystem and the business's growth.
Utilizing Ansoff matrix and the risks involved with each choice, carefully assess the growth
alternative
Ansoff matrix:
 Market development: This technique involves bringing current goods into a fresh
industry. In the particular instance of Knights and Dukes Homes, this approach aids in
growing their company with their current products, but it carries the danger of dealing
with competitors in the fresh industry because the supervisor of the company might then
conduct industry studies prior to actually running their enterprise on a fresh sector in
order to quickly resolve the issue (Hu, 2016).
 Market penetration: It is demonstrated in Knights and Dukes Homes by reducing the
quantity of goods offered in the current industry. Although it costs less than that to
deploy, there is a substantial danger that the company's reputation would suffer as a
result. The business could do this by reducing the cost of their products in accordance
with the business model of competitors.
 Diversification: In the case of Knight and Dukes Homes, this approach carries a
significant danger since this company could approach a fresh sector with newer products,
which carry a significant danger as to whether or not they draw in clients. Organizations
could conduct thorough competitive analysis and raise consumer understanding to reduce
this vulnerability (Innes, 2017).

 Product development: By introducing a fresh item to the marketplace already in
existence, a corporation may increase earnings. It carries the potential danger of whether
or not the item they released is well-known and draws in consumers. To create the item
such that they could earn more money, the advertising supervisor may evaluate the tastes
and interests of the client.
Analyzing the available financial choices and weighing the potential risks involved with the
offered alternatives
Description of the firm: Knights and Duke Homes is a well-known corporation in Britain
which conducts trade on behalf of the government. The management of this organisation wants
to grow their commercial enterprise by setting up two more headquarters in England in order to
draw in a huge client group and generate significant earnings. The management could create a
financial plan which could be assessed as follows:
 Knight and Duke Home's vision is to acquire a sizable client group and increase earnings
by providing best-in-class services and a supportive atmosphere for customers.
 The primary mission of the business is to create a client-focused organisation which
offers the greatest investment and consulting solutions to individuals and fosters
development through generating increased monetary assets (Kearney, 2019).
 The primary objective of Knights and Dukes Homes is to develop a more sophisticated
marketplace by putting more money into corporate responsibilities, which produces
excellent outcomes for the company. In order to develop their operation in Britain by
building 2 additional locations, one of the firm's main goals is to raise revenue by 20%
and earnings by 15%.
Segmentation, targeting, and positioning:
 Segmentation: In this Knight and Duke Home, the management could divide the
marketplace into distinct groups based on the characteristics of the consumers and their
capacity for expenditure. Managers may identify individuals based on demographics
features such as household size, educational status, and purchasing ability. For instance,
many people pay considerable money on their residences, while others would choose a
simple apartment with only the necessities. Such that it is simple to draw in customers
based on their views (Kong, Liu and Fan, 2019).

 Targeting: By starting a different store in Britain, the management could focus on a
household unit with a class, style, and habitual range of 20 to 40 years.
 Positioning: In this management of Knights and Duke Homes, managers wish to
prioritise their standing by renting out high-end residences to clients in order to draw
people in and keep them as clients. In order to effectively place their products in the
marketplace, businesses must employ price and marketing strategies. They should
advertise their products on posters, digital networking sites, and other prominent surfaces.
Fiscal details: Knights and Dukes Homes could create the STP assessment after evaluating
their vision, mission, and objectives, and then they could assigned their spending plan in
accordance with such assessment since it is useful for functioning the fresh 2 subsidiaries in
England and enables the company to increase exponentially by obtaining a productive benefit
and increasing earnings and income. A cash flow statement and budget could be created for this
fiscal year, as illustrated beneath:
Budget
Cash flow statement

Recommendation to the company
The Knights and Dukes Homes should recruit an expert individual that could thoroughly
investigate the industry after evaluating the aforementioned strategic plan, in order to adequately
prepare for expansion. As a result, they could deliver offerings effectively and draw in additional
clients by correctly studying the tastes and inclinations of their clients.
TASK 2
Evaluating different exit or transition strategies for smaller businesses, including the advantages
and disadvantages of each strategy
If a small business cannot turn a revenue and compete effectively, it has the choice to close
its doors or implement transition plans (Mahamud, Samat and Noor, 2016). In relation to Knight
and Duke Homes, the real estate company has experienced significant difficulties in running
company since its inception. The executives have made the decision to leave the sector in this
situation. The items which every investor in a small business organisation searches for are exit
possibilities. The below are a few exit choices for Knight and Duke Homes, along with
advantages and disadvantages:
 Liquidation: In this choice, all properties are sold along with shutting down any real-
world enterprises. When a company is liquidated, its operations are terminated and its
funds or other possessions are distributed to creditors. Since there is nothing else for a
tiny firm like Knight and Dukes Homes or another one that depends on the actions and
practises of a sole individual to function, liquidation is the safest exit strategy.
Advantages and downsides of the choices are as follows:
Advantages: Of all the options, this one is the easiest and fastest. Knight and Duke Homes
can stop worrying regarding the business by exercising the alternative of liquidation because it is
no longer bound to efforts to maintain its reputation (Medeiros, 2017).
Disadvantages: The choice does not offer the highest rate of returns on capital. Resources
including stock, buildings, as well as other machinery are the only things that may be sold during
a liquidation selling to generate money. Knight and Duke Homes won't get another opportunity
to deal in the relevant sector due to the choice. Additionally, it makes it harder to collect unpaid
debt from numerous parties.

 Buybacks by company: It is quite challenging or complicated to prepare forward for
many approaches. Yet, it is feasible if a businessman is prepared to shut down their
company. In this scenario, investors who are knowledgeable of the state of the company
are prepared to purchase the business from the founder. In the instance of Knight and
Dukes Home, management are acquainted with the real estate firm and understand how to
handle it, so the leave choice could lead to an easier transfer while also increasing
commitment to the firm's longstanding tradition.
Advantages: Business is transferred to someone with extensive corporate expertise. Knight
and Dukes Homes would be likely to profit from the arrangement with this choice. The choice
therefore keeps part of its original functionality. It guarantees secrecy and is straightforward and
simple to set up. Additionally, it has better performance odds than some others (Mwangi, 2016).
Disadvantages: The feature's disadvantage would be that it makes it hard to raise funds and
other financial assets for Knight and Dukes Home. Additionally, it entails insider trading dangers
which might lower the cost of obtaining company stock. Finding a supervisor or worker that
desires to acquire the corporation is crucial for smaller businesses.
 Offering to capitalists or collaborators: A businessman might leave the marketplace by
transferring their company to financiers or affiliates. Smaller companies have the option
of offering their firm only to investors or collaborators for a share. This alternative for
Knight and Dukes Home may be comparable to the "continue as normal" approach
depending on the purchaser.
Advantage: By maintaining history and corporate operations as normal, the possibilities are
advantageous. Knights and Dukes Homes could use alternatives to depart the company in the
hopes of making a significant gain on the selling of stock. Engaging and communicating with a
recognized client simplifies the procedure overall (Rigas and Nawar, 2016).
Disadvantages: The quest for a qualified purchaser prepared to acquire company stock is
challenging for Knights and Dukes Homes. Furthermore, it is difficult to continue working with
such organization in any form. Among the two sides, the procedure may lead to serious issues.
From the list of exit strategies, liquidation is best for Knights and Dikes Homes since it entails
simple steps to close up the business and ultimately protects its history. This alternative allows
the organization to easily and effectively wrap up its operations.

In addition to providing sound advice, assessment exit or transition alternatives
A smaller firm is thought to have a variety of exit strategies. According to evaluations,
Knights and Dukes Homes will profit from simple processes, swift corporate losses, and heritage
preservation if they choose the liquidation alternative. Contrarily, when a smaller firm chooses
the exit choice of transferring to shareholders or associates, it reaps the advantages of raising
more money through the transfer of stock and doing business with reputable individuals that are
qualified to run the company and grow it in the foreseeable. In contrast, managers buy-out
alternatives may make it increasingly challenging and complicated to raise money and leave the
business. It is advised that Knights and Dukes Homes choose the liquidation alternative because
it is simple and expedite the whole winding-up process (Thorpe, 2017).
A thorough analysis of the firm's transition or exit alternatives and supported suggestions for
execution
Exit alternatives are analysed carefully as a tactic used by businessmen to leave their current
companies. One choice is liquidation, which has the advantages of being simple to carry out and
has a speedy winding-up of the company (Walker, 2017). Yet, the lower capital yields and
lenders' rights on the proceeds from liquidated items are disadvantages of the liquidation
alternative. The other choice is management buy-outs, which help smaller companies by placing
the administration of the firm in the control of a trusted individual and increasing profits
following the transactions. On the other hand, one of its limitations is the difficulties of finding
recognised potential buyers. It is advised that Knights and Dukes Homes use the exit alternative
of liquidation because it involves straightforward and speedy processes. Furthermore, because it
includes being independent of links for maintaining heritage, the businessman should not
concern regarding the business ever afterwards (Zhao and Liu, 2020).
CONCLUSION
The aforementioned study leads to the conclusion that executives could engage in
comprehensive management for expansion. Every business must at some stage prepare for
expansion. The management could create those strategies for a specified amount of time, like the
short, medium, and longer run. If the company is capable of developing the right business plan, it
will undoubtedly gain the necessary competitive edge in the upcoming. They can therefore
accomplish their aims and outcomes. There are various factors that the administration must take

into account. The Ansoff Matrix could be employed to assess the optimal expansion alternatives.
A business plan could serve as a guide for direction, which makes it quite valuable. Companies
have the ability to choose exit strategies so they could leave the industry if necessary earnings
are not being made.

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